CP13/6 - CRD IV for Investment Firms - Financial Conduct Authority

CP13/6
CRD IV for Investment Firms
2.10 Table 3 shows:
• the prudential categories for:
––
investment firms subject to CRD IV (using the newly proposed term ‘IFPRU investment
firm’); and
––
firms subject to existing transposition of CRD (using the revised proposed term ‘BIPRU
firm’)
(for the definitions of the new prudential categories, please see the Glossary in Appendix 1);
and
• under each category, the key derogations in the Regulation and the Directive that apply /
dis-apply requirements on specific types of investment firms – it does not include general
provisions that apply to all types of investment firms.
Table 3: Key derogations in the CRR and in the Directive by type of firm
Prudential
Category
IFPRU
investment
firm
IFPRU
investment
firm
Subcategory
Full scope
IFPRU
investment
firm
IFPRU
limited
activity
firm
CRR/Directive key derogations
• CRR article 6(4) – firm must comply with liquidity
regime, but CA may exempt it pending the outcome of
the Commission’s review by the end of 2015, subject to
the restricted scope proposed in Chapter 4 of this CP.
• CRR article 11(3-4) – pending the Commission’s review
and if the group comprises only investment firms, CAs
may exempt them from compliance with the obligations
laid down in Part Six on liquidity on a consolidated basis,
taking into account the nature, scale and complexity of
the investment firm’s activities.
• Directive articles 130(2) and 129(2): Member States may
exempt small and medium sized (SME) investment firms
from the Capital Conservation buffer (CCoB) and the
Countercyclical capital buffer (CCyB).
• As Full scope IFPRU investment firm and in addition:
• CRR article 6(5) excludes this category from the leverage
requirements on an individual basis.
• CRR article 15 – CA may waive application of own funds
requirements on a consolidated basis.
• CRR article 16 – if all entities in a group of investment
firms are exempt from leverage ratio on an individual
basis (6(5)), the parent investment firm may choose not
to apply leverage provisions on a consolidated basis.
• CRR article 388 states that large exposures do not apply
to limited activity firms.
Proposed
FCA
Handbook 1
January 2014
IFPRU
IFPRU
16 July 2013
Financial Conduct Authority